Skip to main content

tv   Fast Money  CNBC  November 18, 2013 5:00pm-6:01pm EST

5:00 pm
>> live from the nasdaq market site, this is fast money, america's post market show. i'm melissa lee. here is tonight's line-up. we hardly knew ya. stocks backing off of their all time interhigh today. and how about this for return. the value of bit coin has jumped 60 times. plus losing momentum.
5:01 pm
our traders tonight are let's get stragtd to our top story this evening. yes, 1800. stocks pulling back from the key levels. carl icahn saying he is very cautious about the stock market and that we could see a big drop. >> he has been saying that his returns have been great. so he does have a vested interest in seeing a sell off. >> until today it fell on deaf ears. what it does set up is a number of reversals.
5:02 pm
. i thought there was a really good chance. i thought it would be healthier for the market if it did that last week. i thought the worst thing would happen. here we are i think 1760 comes into play this week. i know i am not. >> it doesn't help that we are seeing the european stocks go to a biggest weekly rally. that is more than 30% since its low over the summer. >> everything helps. participation is really
5:03 pm
important. global participation is better than what we had in prior rallies. no one can real wly look at thi market and say it's cheap. we overshoot to the downside and we overshoot to the upside during what they would call euphoria. most bull markets end about 17, 18 times earnings. so typically, you would have room to run.
5:04 pm
>> even though she's a slower longer term investor, people have been rewarded with this marketplace and if you have gotten out you have always made a bad sale. >> i wanted to know since we were asking whether or not it was too late to get in what a short seller would get in. he is getting ready in terms of funds looking to short parts of the market. are you tempted at this point to short the market? he says i am not awarded. >> i think when he does come in, i don't want to speak for him. i don't think he's going to try to sell the top of the market. so, i don't think he is looking to necessarily ring the bell as karen said. he is waiting to see if the stars line up. >> he is taking a look at a very
5:05 pm
interesting chart which could tell us a little bit about where the markets go up. it talks about something called advancing volume. so this is net advancers minus the volume of the decliners if you think about these bars as resistance lines, each time we have kind of hit a higher hurdle. the small cap 600 and the mid cap 400. so it's a very diverse mix. the buyers are clearly in control and they are getting more embold ened, not less. and that's key. if you think about the major tops throughout history, they all occurred with a lot of stocks dropping off of the
5:06 pm
radar. continuing to plow away. and thankfully, we still have a lot. >> josh, explain to me what would signal to you the top. because so far, each move up has been quince dense with a move up in the market. what was it again you were looking for to tell you this ratio is showing a decline? >> it's easier to say what i would not be looking for, which is narrowing leadership. we don't have that. but what you don't want to see is a handful of stocks continuing to move the chains and everything else falling off. everything was already selling off. you have the opposite right now. that could change but for the time being, this is is a cumulative measure of
5:07 pm
participating advancers. >> so broader market participation here. let's talk about what was a buzz kill today. it does seem like perhaps we're witnessing a transfer of leadership today. almost breaching its 200 day moving average. it's at about 121. >> the big moving day average was the 50 day and that was at about 170 or so. when it broke that, that's when i exited 2/3 of my trade. that's when i saw the other third of it. >> josh, how do you feel about tesla at this point? are we witnessing momentum stocks. the heavy days of tesla over? >> the reality is this is a news
5:08 pm
driven situation. i think it could set up again and have another rally. you're going to read stories every day. you have already been stopped out of this a long time ago. he was in front of the camera, that is actually what i used to want out of the stock. >> but you don't. >> when he starts meandering around different topics. >> no new fires in the news, maybe? >> i think that no one is turning around selling their goog lt or apple to make room for tesla. >> is it the same for solar city even though it has nothing to do with it? >> we have discussed this. all of those solar names started on taxable issues where they could pull forward issues.
5:09 pm
now it's a matter of if you continue to see crude decline, what's the incentive? >> solar stocks have hung in there. >> i think of the musk. >> i would guarantee that they wouldn't know if you polled them ether. >> another, getting hit big time today. shares of the wifi provider. we will be talking with the ceo of go go coming up in an exclusive interview about wra wr he sees growth from here. >> den nis, great to see you. >> good to be seen as always. >> you say it's finally time to invest in coal? >> i like coal. no one likes coal.
5:10 pm
everybody hates goal. everybody thinks that coal is dirty. you take a look at the etf, it had been in a long protracted bear market. didn't wish to make new lows. started to make newer highs. we're not going to do away with coal. i think there is something going on in the coal market and it's consistent with that theme that i have liked for a while. i like coal, i like steel, i like copper. i like simple things. i'm too old to learn about high-tech and big pharma. >> is that a china play? >> no, i actually think it's more than just a china play. i think it's a europe and south america play. i think the global economy is doing reasonably well.
5:11 pm
it will certainly not hurt if the decision is made by the third really bear fruit and they probably shall. so it's clearly a help but it's a bet that the entire global economy is going to do better. >> typically when the noose is at its worse is when you get into those things. team to be waking up to the resurgence in the steel names. >> they have been a long time coming. and if you take a look at the steel stocks, they have really just begun to move. the rest of them were multiples higher. 15, 10, 15 times higher. it's interesting to find people coming to their area for the first time in a while. i think they are just starting to move up and everybody has been talking about the 200 day
5:12 pm
moving average coming down through the 200. >> den nis, don't you think where melissa started off the conversation with the headlines out of china, don't you think that would have rallied coal and steel today? we didn't see that? >> steve, they have been rallying strongly for the past several weeks. i'm not at all surprised that steel sold off. that's not a-typical. >> if we think it's going to be more transparent and the data is actually going to be more true than what we have seen there, that has been speculation that we have not seen real data coming out of china. >> i have owned the coal stocks for a while and the steel stocks for a while. i will try to hold them to the best of my ability. it is abundantly clear where one
5:13 pm
is wrong. over the course of the last six, seven, eight, nine months. looks to me like a bull market that is just beginning. >> den nis, great to see you. guy, you have been on the steel trade for quite sometime. do you agree with den nis that there is more to go? >> you are talking about trading these now. and for me, price trumps everything. the way that steel stocks go, then subsequently morgan stanly didn't trade particularly well. we said 27, 28 would be level of resistance. i think we found it. i would look to take profits. >> coming up next, the value of one currency has jumped more than 60 times over the last year.
5:14 pm
i'm talking about bit coin. and that may sound like a great return but is it a safe investment? plus a break out for the banks. take a look at whether bank stocks still have room to run. stay tuned.
5:15 pm
5:16 pm
5:17 pm
>> that really helped the sales surge there. comparable store sales. melissa, back over to you. >> thank you very much. ant polg was a real bright spot. >> you know, we talk about it. 40 bucks. it's not a big shortage. what does it mean 18, 19 times forward earnings. you're smack in the middle of
5:18 pm
the range. complete retracement. i think it's no man's land here. i think urban outfitters, you're flipping a coin. >> consumer discretionaries are up. the chart is a total mess. i would not be following any strength or weakness. >> for more on how to play retail heading into the holidays, brine, great to have you with us, what are you thoughts on urban? >> we have a 43 $price target. half of the business is struggling. i think the market has been well prepped. american eagle down 5. so the teen market is struggling. the other three percent is catering to an old eer mellinia
5:19 pm
customer. as we move forward and talk about the secular changes, you want to own something that you don't want to be in the mall and have stores. you want to have an online business. >> let's talk burlington. recently ipos. this is one of your top picks here? >> it is. and we were involved in the underwriting of it. i think the idea that from a secular shift, the off price sector has been the place to be the last four years. into the recession coming out of the recession. the off price market is growing about 6%. you have tjx and ross stores at all time high operating margins. compare that to burlington where they only have 5% margins. if they could narrow the gap,
5:20 pm
you could have over $2 of earnings potential. we think that's pretty remarkable. it is a heavily levered company. one of their private equity investors still owned 78% of the company. we think the risk reward looks very compelling. >> this is is a company that has been around a long time. they have had a long time to make enroads. that private equity did they try to sell it and couldn't get any buyers? this reflects a lot of great things happening. discounted back at probably a, not a fair weighted average. >> yeah and the off price sector clearly has been part of that
5:21 pm
trade. and versus ross and t.j., macy's and kohl's which really don't have square footage growth. there could be a thousand. i think the set up with an entirely new management team. this looks a lot different than it did three or four years ago. >> brine, we're going to leaf it there. >> i really still favor kors. this is my pick. i think they blow it out this christmas. >> it's really unpopular but abercrombie is bouncing around this level. the stock reacts well. you could see a big pop in abercrombie. >> and trading back to
5:22 pm
pre-lehman levels. and bit coin heads to the hill. we will take you inside the risks and regulations or lack there of coming up.
5:23 pm
5:24 pm
5:25 pm
welcome back to fast money. shares relatively flat in the initial part but now up about a percent. reported earnings that match analyst estimates on sales that beat estimates but it was the outlook that was a bit more of a mixed bag.
5:26 pm
the company also announced a partnership with packard. >> josh, what's the trade here? >> you printed a really nasty red candle going into this earnings report today. so the short term traders if it doesn't, i don't think you want to be long the name. >> are you going to comment on this? >> you know, it's 2013 and people use technicals to trade short term stocks. >> i thought it was a bed bath and beyond trade. >> he is just being childish and giggling about the mention of the nasty red candle. >> he has got a sense of humor. look at his tie. >> what are you saying? >> we should note, jim kramer is speaking with salesforce.com
5:27 pm
ceo. >> we offered to do it for free, rebuild it for free. >> is that too expensive? >> i think it's hard for them to process. >> it's a customer relations problem. the customer was forgotten. >> it's our sweet spot. san francisco is a long way from washington d.c. >> more of that interview on "mad money" coming up, of course, top of the hour. time to hit today's top trades here and we start off with the unlikely soap opera. the world's largest potassium miner. >> when this does return and guys are making bets that it will return, you will see all of these companies fill the gap from back in late july.
5:28 pm
i'm long pot. i believe the cartel is coming back. the stock tells me it's coming back. multiyear highs for bank of america. >> multiyear high still they got a long way to go. citi bank is is a reverse 10 for one split. of the big three which i own, jp morgan, bank of america and citi, i think citi has the most upside but i am long all three. >> and you like bank of america also? >> and we mentioned it last week on the show that $15 is is a huge number for this name. rsh after the break we're connecting you to the air waves, 10,000 feet in the air with the
5:29 pm
president and ceo of go go. and much more in a first on cnbc interview. ♪
5:30 pm
5:31 pm
5:32 pm
♪ >> welcome back. welcome to fast money. we're live at the nasdaq market scare. go go has skyrocketed, climbing around 120%. but in just the past week the company has been hit with three downgrades. can go go hold its altitude and is it the best way to play the airlines? joining us is michael small, president and ceo of go go. thank you for joining us. >> my plez to be here. >> since that time, october 31, your stock is up 57%. help us understand how this will be acreative to your earnings if we are to bid your stock higher by 57% since then. >> so, our rise, i don't think, was strictly because of the faa
5:33 pm
announcement that we can use our phones all the way from gate to gate. that was certainly a nice tail wind but also the result of very strong earnings raising our guidance as well as a series of innovative product announcements we made. at this point, michael, do you wish that perhaps stronger hands will be owners of the stock? that seems to be one of the streaks biggest qualms, the valuation partly because of that short squeeze. >> we would love to have long term institutional and retail holders. you know, we're in the early stages of connecting aircraft and connecting aircraft is the future of aviation and we're the
5:34 pm
clear leader. i think it's going to take a while for investors to get their heads around the story. we're in a good industry and we're the leader. >> a lot of analysts are looking at free cash flow. when will you be free cash flow positive? you still have a lot more to invest in as you ramp up, particularly internationally. >> we have three lines of business. our business aviation side is now throwing off a lot of cash flow. we are just reaching ebitda. we are investing heavily to expand north american commercial aviation because there is is a huge number of aircraft. >> it's josh brown. i love your story and what you're going to do to make our flights more livable. especially longer flights so thank you for that.
5:35 pm
if i'm a trader in your shares, my number one concern is that someone is going to come along and start to do exactly what you're doing. and i think that has been chattered about a lot since you have come public. could you address that competition fear? is there anyone you're worried about? or is the potential so big that maybe it doesn't even matter? >> i would say, i agree that there is a huge opportunity here. i do think the industry structure will just be a couple three players. it requires tremendous investment to connect aircraft. the technology is hard to develop and then to get an aircraft in a highly regulated industry is also a real challenge to take care of equipment on planes that move all over the globe is challenging. >> speaking of the investments, if i could get your take on when your company migs be free cash
5:36 pm
flow positive. >> we certainly had plenty of discussions with the analysts since they built their models, but i think that our track record, we started earliest in business aviation. we started abfive years ago in commercial aviation and we are re-investing some in international. so i think the underlying profitability trends are really strong in our business. >> great to have you with us. hope you come back to fast sometime soon. the ceo of go go, michael small. josh, you have been in this name. what's your take on this? >> i think it's the very early stages for a business like this but the street seems to be enam moured with the potential.
5:37 pm
>> i think your point is extremely valid. i just think why can't these airlines do it themselves? jet blue is going to be rolling out. >> i will answer that. the airlines clearly can't do anything themselves. number two, they have made the investment wlrd. they have burned a tun of cash to get to where they have gotten and i doubt any of the airlines are in the mood to do that, this massive infrastructure investment. >> i will answer that back. jet blue is doing it and they are rolling out their own streaming come the spring. so my question is, what do they do with that? do they carve it out? is it separate from texting and e-mailing? or is this all streaming? >> this is streaming videos. >> which is huge with four kids. you need it in the cloud, you need to be able to stream. texting and e-mail, great, but it doesn't do any for me.
5:38 pm
>> you're fbuying go go for a short squeeze. jet blue to me is still the most interesting one. i think we all understand that. just for safety, i would like to be in jblu. >> we are in chicago with the options action. b brian, what did you see? >> some of the bullish names can sort of pass you by. merk was one of them. we saw some pick up in activita. really moving higher on technical reasons. basically they came out. their skin cancer treatment turned out to be very positive. maybe they will get some approval behind that. >> merck was one of those, and
5:39 pm
we also saw very interesting call activity. big buyer of the weekly. these are call options expiring this friday, paying ten cents for the 48.5 strike call. typically when i see these cheap calls being bought, that tends to mean that merck is moving higher. i play them to the upside here. >> thanks for that. and check out the web site. coming up next, bitcoins are soaring. a hearing in washington over virtual currencies may have something to do with it. we will talk the bits and pieces of bitcoin after the break. what do best buy and etrade have in common? your answers to those tweets, next. [ indistinct shouting ] ♪ [ indistinct shouting ]
5:40 pm
[ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪
5:41 pm
5:42 pm
>> bitcoin prices surging past $600 for the first time ever. back in november 2012, today the u.s. senate committee held a hearing to discuss the currency.
5:43 pm
do you think any of our audience knows what bitcoin is? >> i'm going out to times square and i'm going to ask folks. >> good luck. >> all right. i'm outside. let's find folks who know what bitcoin is. >> can you explain bitcoin? >> bitcoins? >> is that a famous drink? >> bitcoin? i'm not really familiar with the terminology. >> is that internet money? >> what do you folks know about bitcoin? you can whisper in my ear. bitcoin is a virtual currency used on the internet to take the place of the dollar. is that what you just said? what's worth more this hershey
5:44 pm
bar? >> candy. >> i pad or bitcoin. >> i would say a bitcoin. >> would you invest in bitcoin? >> sure. >> if it's going to bring me money. >> final question, fast money, fan or foe? >> i'm a fan. >> outstanding. love ya. >> i still have my jacket on. you have got to move out there in times square. >> especially mungs the plushies. >> it uses completely digital money and unlike real money, there is no centralized bank or authority that runs the stm. instead it operates on open source software.
5:45 pm
>> let me say this, it is a lot of fun to speculate with but an actual currency doesn't appreciate by 60 times its value. it's not that you can't do transactions but that very few people actually are. most of the activity is trading and i think it's coinciding with this new tech and venture start up bubble that we have because these are the guys that love to play with this stuff. >> so even though it's not going to be used for actual transactions, it is still a good investment? >> what is stopping it from going higher? supply and demand. it's a lot of fun. >> take a look at this, outlining key levels to watch.
5:46 pm
>> key levels? >> i know. this is a digital currency but there can be key levels on a chart. key here -- >> that is unbelievable. that was my key level, too. >> i tell you what's going on, though. there are start ups that have sprung up in the last few months that will make it super easy. regular people to be able to buy and sell the stuff. i think that could be a whole new leg up in the price of bitcoin. as to whether or not you want to dump your savings into something like this? >> one of the oldest exchanges that deals with bitcoin is in china. a lot of the volume is from china and they are viewing this according to the ceo as an alternative currency. >> we are viewing it as what? can't you see when ever the
5:47 pm
bubble from this era is over, bitcoin is one of the most commonly referred to ridiculousness highs of this era? >> it's more ridiculous than the art market. it's more ridiculous than a lot of the start-ups that people scoff at. this is like the outward extremity. >> so no touch? >> i don't understand. no. >> you? >> sure. knock yourself out. >> karen? >> don't think it's currency. >> would i be in bitcoin? no. >> guy? those were the same levels. >> that was smur f et. >> some of today's top moments, here is a rapid fire recap in tonight's executive edge.
5:48 pm
>> starting out this monday morning with fresh highs as the dough topped 16,000. both for the first time. >> i think the new video game consoles will be huge. >> it's been a long time since i have been big in the business. year on year, for two years in a row. >> if there is some hope that we will get this thing done, he is cool, smart, and he is, you know, very efficient. we have moral and social obligation. massachusetts is a model. what gets this is massachusetts implemented five steps over 20 years. we're implementing five steps on monday. >> with more than 2.4 forward, and only having 35 million users. you can see how the potential is
5:49 pm
up to regain and gain more ground. >> guy, i will give you a chance to redeem yourself. >> twitter. i heard that one. >> okay. >> i think he makes an excellent point. my only concern about twitter here and karen speaks this. at a certain point this could be a $60 stock. everybody thinks that it has got to trade in the mid 30s first. >> real quick on game stop, everyone says and we're not going to play the old games. both of the new games are not backwards compatible. >> they can't use the old games for the new game systems. there is much larger margins on
5:50 pm
the older used games versus the new games. >> all right. we are trading your tweets and that's right after this. ♪ ♪ so you can get out of your element. so you can explore a new frontier and a different discipline.
5:51 pm
get two times the points on travel and dining at restaurants from chase sapphire preferred. so you can be inspired by great food once again. chase sapphire preferred. so you can. you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪
5:52 pm
5:53 pm
>> time now for pops and drops. big movers of the day. they have a big country push in new york city. they have been doing a good job. they did an equity offering. i like the company. >> pop here for boeing. >> this stock has almost doubled. i think it's time to pull the rip cord on this one. >> drop for invid ya? >> morgan stanley downgraded it. right here on the chart it looks like it wants to go lower for me. >> drop here for twitter. josh brown. >> they got another downgrade this morning. seems to increasingly be where
5:54 pm
this is headed. off 6%. just an ugly day for the group. >> you get a odrop here for turkeys. here is a story that is sure to ruffle your feathers. butt butterball says there is a shortage of the birds this year. according to the company, turkeys were not putting on the pounds like they have in the past. the shortage only impacts fresh birds and there are plenty of frozen fouls left on the shelves. >> i should have gone to pot belly with josh. >> they deliver. >> all right. let's get to some of you viewer tweets. >> let's get to our first tweet here. >> i am glad you had a great trip.
5:55 pm
it's clearly a lot more difficult than it was a few months ago. earnings continue to come in strong. it's a great name. >> this one is for karen. did he dump fedex friday or today? >> i don't think he's in the business of putting on big positions and trading out of them. so i think not. >> e-trade, is there a turn around hope afterall? >> rising rate environment favors the stock. we have been looking and should be looking forward to a rising rate environment. but the near term chart looks pretty amazing. >> cree can't seem to find its footing. >> i looked at the stock. it looks like death. two misses in a row.
5:56 pm
you have a multiple. i would avoid it for you. >> i have one for you. the space has been on fire. you are focusing all of your printing bet. >> this is not the thing that you have to diversify your 3d printer. i have been in it since last november. but the whole space has been on fire. i don't know if that's such a great thing. you almost want them to cool off a bit. this could be a step in the top for years to come. (vo) you are a business pro.
5:57 pm
maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro.
5:58 pm
i'm a careful investor. when you do what i do, you think about risk. i don't like the ups and downs of the market, but i can't just sit on my cash. i want to be prepared for the long haul. ishares minimum volatility etfs. investments designed for a smoother ride. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. [ bagpipes and drums playing over ]
5:59 pm
[ music transitions to rock ] make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you open an account. >> time for the final trade. steve and pete? >> bank of america but wait for a close above $15 before you get in. >> joshua brown. >> i think bank of america is too cheap and i think it's going higher. >> both of you on the same page? >> i still like live nation. good story long term.
6:00 pm
>> starting to shape up. >> i can't tell you. see you back here again. in the meantime, mad money starts right now. starts right . my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." a lot of people want to make friends, try to make you some money. and i'm looking for cutting edge ways to do it. out here at the 2013 dream force conference in san francisco. my job's not just entertaining but to educate and teach. so call me at

25 Views

info Stream Only

Uploaded by TV Archive on